The defunct NoCo organic farm owes nearly $10 million to a list of more than 200 creditors, a bankruptcy filing shows.

Jan. 18, 2013

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Volunteer Abby Patterson carries a pair of Grant Family Farms hens adopted during a program at the farm Friday. About 2,000 hens are up for adoption during an event from 9 a.m. to 4 p.m. today 12155 County Rd. 15. / Rich Abrahamson/The Coloradoan

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See more photos of the Grant Family Farms chicken adoption event at Coloradoan.com.

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The numbers behind Grant Family Farms’ bankruptcy show Northern Colorado’s largest organic farm was saddled by a debt of nearly $10 million at the time of its collapse.

To balance that debt load owed to more than 200 creditors, the defunct farm had only $3 million in assets, according to a statement submitted in U.S. Bankruptcy Court this week by farm owner Andy Grant.

The 67-page document provides insight into the farm’s financial situation of the past year. The 2,000-acre farm closed last month, filing Chapter 7 bankruptcy on Dec. 28. The filing requires the farm to close and liquidate assets to settle its debts.

While the list of unsecured creditors contains names from California to New York, nearly $550,000 in claims are from 36 Fort Collins creditors. They range from $64 owed to Fort Collins Brewery to $334,000 owed to Michael and Martha Power, according to the filling.

Creditors will gather at 11:30 a.m. Tuesday at the Larimer County Courthouse to line up in an attempt to recoup their losses.

Martha Power said she worked a variety of jobs on the farm from 2005 to April 2012. She and her husband, Michael, loaned Grant Family Farms money in 2008 for operating capital, she said. According to court records, the Powers advanced Grant Farms $150,000 and $100,000 in 2008.

Grant Farms previously filed for Chapter 11 bankruptcy restructuring in April 2006 and February 2007, during which Martha Power stayed with the farm. She said it seemed like a “good bet” to invest in the farm once it emerged from the second bankruptcy.

However, Power said “all hell broke loose” at the farm after 2008, and by April 2012 Grant stopped paying interest on the loan. In March, the Powers filed suit in Larimer County District Court against the farm, Grant, Nick DiGiorgio and Michael Bartolementi over the loan.

The Powers’ case against Grant Family Farms is ongoing, according to state court records.

Power plans to attend the creditor meeting, but has no expectations she will be paid.

“It is pretty sad. I don’t expect to see that money again,” she said.

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Robert Poland, co-founder of Fort Collins MouCo Cheese Co., is owed $2,446, according to the filing and plans to attend the creditors meeting. Poland said earlier this week that he is not optimistic about getting his money.

Included in the creditor list is the Colorado State Treasurer, owed $223,696; and farm founder Lew Grant, owed $384,000. S&C Organics in Fort Atkinson, Iowa. is owed $403,748, according to the filing. Andy Grant himself is listed among creditors, owed $294,868 in deferred wages.

Six Dog Investments LLC — DiGiorgio’s company that owned the 12,000 chickens on the farm Grant said he had slaughtered to avoid starvation — is owed $34,000, with DiGiorgio claiming $490,000 personally.

Creditors holding secured claims include AG Direct based in Omaha, Neb., holding a $235,000 claim; Colorado Community Bank, with a more than $1 million clam; and Localization Partners, holding a $1.5 million claim.

The farm’s personal property is valued at more than $3 million in the filling. The value of its Community Supported Agriculture program is listed as “unknown.”

In addition to owing money, the farm had several tucks and tractors repossessed toward the end of 2012.

While faced with $10 million in debt, Grant gave away a number of gifts last year, including $173,853 to the Food Bank for Larimer County, according to the filling. Grant attempted to give the food bank the farm’s remaining produce after filing for bankruptcy, but the food bank turned down the offer to avoid becoming embroiled in the legal battle over the farm’s property.

Our original report listed the adoption site as Grant Family Farm at 1020 West County Road 72. The address for the adoption is 12155 County Road 15 at Adopt A Hen.